SANTA ANA (CBSLA) — An Irvine name surrendered to federal agents Friday after allegedly using $5 million in fraudulent coronavirus assistance loans to buy a Ferrari, Bentley and Lamborghini.
(credit: U.S. Attorney’s Office)
A federal grand jury indictment returned Wednesday named 38-year-old Mustafa Qadiri with four counts each of bank fraud and wire fraud, a count of aggravated identity theft, and six counts of money laundering. Federal prosecutors say Qadiri surrendered to law enforcement Friday morning.
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According to the indictment, Qadiri claimed operate four Newport Beach-based companies: All American Lending, Inc.; All American Capital Holdings, Inc.; RadMediaLab, Inc.; and Ad Blog Inc. And even though none of the companies are currently in operation, federal prosecutors say Qadiri submitted false and fraudulent Payment Protection Program, or PPP, loan applications to three banks on behalf of those companies in May and June of 2020. Qadiri allegedly also used someone else’s name, Social Security number and signature to apply for one of those loans.
Qadiri was given approximately $5 million in loans, and used the fraudulent funds for himself, purchasing luxury vehicles, lavish vacations and the payment of his personal expenses, according to federal officials.
The Ferrrari, Bentley, and Lamborghini have since been seized, along with $2 million from Qadiri’s bank account.
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Qadiri is scheduled to make his first appearance in federal court Friday afternoon.